relative use of leasing

1. Suppose there were no IRS restrictions on what constitutes a valid lease. Explain in a manner that a legislator might understand why some restrictions should be imposed.
2. Suppose Congress changed the tax laws in a way that (a) permitted equipment to be depreciated over a shorter period, (b) lowered corporate tax rates, and (c) reinstated the investment tax credit. Discuss how each of these changes would affect the relative use of leasing versus conventional debt in the U.S. economy.